H.I.G. Capital News

H.I.G. Capital Announces Investment in ChemDesign Corporation

Miami, FL - March 31, 2002 - H.I.G. Capital announced today that it has acquired a significant equity stake in ChemDesign Corporation, based in Fitchburg, Massachusetts.

ChemDesign is one of the top custom chemical manufacturing companies in the United States. Founded in 1982 and with operations in Fitchburg, Massachusetts and Marinette, Wisconsin, ChemDesign is known throughout the industry as a leader in producing high-quality, complex custom chemical products for its clients. Key specialty markets include photographic, agricultural, reprographic, plastic additive and paper coating chemicals.

ChemDesign is led by John Van Hulle, former President of Cambrex's $200 million specialty chemical operations and a seasoned executive of the chemical industry. Mr. Van Hulle's investment group, Chestnut Investments, acquired ChemDesign in December 2001 from its former parent company, Bayer AG. H.I.G. has joined forces with ChemDesign to bring additional resources and capital to the Company as it embarks on a period of rapid growth.

"ChemDesign is a terrific business that we were very excited to partner with" said Charles Hanemann, a Managing Director at H.I.G. "ChemDesign is a leader in the custom specialty and fine chemicals market because it marries deep process capabilities with tremendous flexibility and rapid turn-around times for its customers. We think there are a number of very exciting growth opportunities for the business -- both organically and through strategic acquisitions. This growth will mean great things for the business, its employees and its customers."

About H.I.G.

H.I.G. Capital is a leading private equity and venture capital investment firm with more than $1.5 billion of equity capital under management. Based in Miami, Florida, and with offices in Atlanta, Boston, and San Francisco, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of well-established, profitable, and well-managed manufacturing or service businesses, and in promising early-stage technology companies. Since its founding, H.I.G. has made more than fifty highly successful investments, acquiring companies with combined revenues in excess of $5 billion.